What once was a free enterprise economy has now devolved into a crony corruptionfest predicated upon access to trickle down printed money, and mass fraud, now culminating in human history's largest insider cashout. Bernie Madoff is wondering why he's still in jail, when he could be running Treasury instead...
The reason why Trump-o-Nomics failed is because both the tax cut and now the rate cut went only to the wealthiest. What the middle class got was a con job and higher debt service burden. The Fed cut rates today because the global economy is sliding into recession. Unlike the U.S., European nations can't run 4% of GDP deficits in order to paper over recession. All those circus clowns crowing that Europe is weak while the U.S. economy is strong, are just more blowhards.
Be that as it may, make no mistake this is now all about central planning gone awry. Because today's wholesale Idiocracy now overwhelmingly believes that recessionary interest rates are the primary reason to buy stocks. Global central banks have pushed gamblers over the cliff into risk in the face of recession.
Case in point, here we see the record disconnect between Aussie stocks and the Aussie dollar. Both are screaming downturn, yet gamblers are more concerned about return on capital while ignoring return of capital.
"Investors are hoping for generous dividend payouts as some of Australia’s biggest companies look set to report profit declines this month"
The prospect of across-the-board earnings disappointment in a frothy sharemarket puts the spotlight on capital return"
In the months leading up to reporting season, downward adjustments to earnings guidance have outnumbered upward adjustments seven to one"
Of course, adjusted for competitive debasement, and returns don't look as good:
After the crash of 1929, the market bounced back and everyone believed the worst was over. Trade wars erupted and global competitive debasement ensued, but just as now, the disintegration of the world trading order in broad daylight was assiduously ignored.
Then came the real crash.
It was always going to end this way. Arrogant jackasses led by much bigger arrogant jackasses. All believing that printed money is the secret to effortless wealth.
They have no answers because they have no questions. They are all fully assimilated.
Ready for shearing...